FOREWORD

Historical background

Standards and Recommended Practices (SARPs) for Environmental Protection were first adopted by the Council on 2 April 1971 for Aircraft Noise, pursuant to the provisions of Article 37 of the Convention on International Civil Aviation (Chicago, 1944) and designated as Annex 16 to the Convention. On 11 May 1981, the Council agreed that it was desirable to include all provisions relating to environmental aspects of aviation in one Annex to the Convention; it therefore renamed Annex 16 as “Environmental Protection”, making the existing text of the Annex into Volume I — Aircraft Noise, and adopting the first edition of Volume II — Aircraft Engine Emissions on 30 June 1981. On 3 March 2017, the first edition of Annex 16, Volume III — Aeroplane CO2 Emissions was adopted by the Council.

This Volume IV to Annex 16 was developed in response to a request by the ICAO Assembly which, at its 39th Session in 2016, adopted Assembly Resolution A39-3: Consolidated statement of continuing ICAO policies and practices related to environmental protection – Global Market-based Measure (MBM) scheme. In this Resolution, Member States decided to implement a global MBM scheme in the form of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

Discussions on the application of MBMs as a means to limit or reduce CO2 emissions from international civil aviation had taken place prior to the 37th Session of the Assembly in 2010, which adopted Assembly Resolution A37-19: Consolidated statement of continuing ICAO policies and practices related to environmental protection — Climate change. Assembly Resolution A37-19 requested the Council, with the support of Member States and international organizations, to continue to explore the feasibility of a global MBM scheme by undertaking further studies on the technical aspects, environmental benefits, economic impacts and the modalities of such a scheme, taking into account the outcome of the negotiations under the United Nations Framework Convention on Climate Change (UNFCCC) and other international developments, as appropriate, and report the progress for consideration by the Assembly at its 38th Session in 2013.

The Assembly, at its 37th Session, also adopted global aspirational goals for the international aviation sector of annual average fuel efficiency improvement of 2 per cent, and keeping the global net carbon emissions from 2020 at the same level (also referred to as carbon neutral growth from 2020).

The work requested by Resolution A37-19 focused on the qualitative and quantitative assessments of potential options for a global MBM scheme for international aviation. Building on this work, the Assembly, at its 38th Session in 2013, through Resolution A38-18: Consolidated statement of continuing ICAO policies and practices related to environmental protection — Climate change, decided to develop a global MBM scheme for international aviation, and requested the Council, with the support of Member States, to finalize the work on the technical aspects, environmental and economic impacts and modalities of the possible options for a global MBM scheme, including on its feasibility and practicability, taking into account the need for development of international aviation, the proposal of the aviation industry and other international developments, as appropriate, and without prejudice to the negotiations under the UNFCCC.

Assembly Resolution A38-18 further requested the Council to identify the major issues and problems, including those for Member States, and make a recommendation on a global MBM scheme that appropriately addresses them and key design elements, including a means to take into account special circumstances and respective capabilities of Member States. The Council was also requested to identify the mechanisms for the implementation of the scheme from 2020 as part of a basket of measures that also include technologies, operational improvements and sustainable aviation fuels to achieve ICAO’s global aspirational goals.

Following the 38th Session of the Assembly, the Council, at its 200th Session in November 2013, supported that the Committee on Aviation Environmental Protection (CAEP) would continue to undertake technical tasks related to the development of a global MBM scheme, as requested by Resolution A38-18. The Council also decided upon the establishment of an Environment Advisory Group of the Council (EAG), which was mandated to oversee all the work related to the development of a global MBM scheme and make recommendations to the Council.

The EAG focused its work on a mandatory carbon offsetting approach as the basis for a global MBM scheme for international aviation. The EAG/15 meeting in January 2016 considered a draft Assembly Resolution text on a global MBM scheme, which was further refined throughout 2016 by two meetings of a High-level Group on a Global MBM Scheme in February and April 2016, a High-level Meeting on a Global MBM Scheme in May 2016 and a Friends of the President Informal Meeting in August 2016.

The Assembly, by adopting Resolution A39-3, requested the Council, with the technical contribution of CAEP, to develop the SARPs and related guidance material for the implementation of the Monitoring, Reporting and Verification (MRV) system under the CORSIA, and for Emissions Unit Criteria (EUC) to support the purchase of appropriate emissions units by aircraft operators under the scheme, taking into account relevant developments in the UNFCCC and Article 6 of the Paris Agreement; as well as policies and related guidance material to support the establishment of registries under the CORSIA.

Following the Assembly, the Council, at its 209th Session, endorsed the overall plan of preparatory activities for the CORSIA implementation, including development of the CORSIA-related draft SARPs and guidance by CAEP.

The CAEP developed International Standards and Recommended Practices for the CORSIA and, after amendment following the usual consultation with the Contracting States of the Organization, the first edition of Annex 16, Volume IV was adopted by the Council at its 214th Session.

The Assembly, as per Resolutions A39-3 and A40-19, requested the Council, with the technical contribution of CAEP, to undertake a periodic review of CORSIA every three years starting in 2022, for the Council to consider whether it is necessary to make adjustments to the next phase or compliance cycle of CORSIA and, as appropriate, to recommend such adjustments to the Assembly for its decision. In accordance with this request, the Council, in March 2021, agreed on the process and Terms of Reference for the 2022 CORSIA periodic review, including a series of requests to CAEP for providing further inputs and analyses to support the Council’s subsequent work on this topic. CAEP inputs to the Council during the 2022 CORSIA periodic review included, inter alia: regular assessments of the COVID-19 pandemic impacts on CORSIA and its baseline; assessment of costs of CORSIA implementation on States and aeroplane operators; analysis of possible market distortion in the context of CORSIA design elements; and an analysis of various scenarios for the CORSIA baseline after the pilot phase (2024 to 2035).

The Council, at its 226th Session in August 2022, finalized its work on the 2022 CORSIA periodic review with the consideration of the requested CAEP inputs. The Council agreed on its recommendations arising from the 2022 CORSIA periodic review, for consideration by the Assembly at its 41st Session, namely: the use of 2019 emissions as the CORSIA baseline for the pilot phase, and the use of 85 per cent of 2019 emissions as the CORSIA baseline after the pilot phase; changes to the percentage use of the sectoral and individual operator’s growth factors as 100 per cent and 0 per cent, respectively (for the 2030–2032 period) and 85 per cent and 15 per cent, respectively (for the 2033–2035 period), for the calculation of offsetting requirements under CORSIA; and change of reference emissions from 2020 to 2019 for the new entrant threshold.

The Assembly, at its 41st Session (27 September–7 October 2022), considered the Council proposals and adopted Resolution A41-22 (Consolidated statement of continuing ICAO policies and practices related to environmental protection – Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)), which incorporates the Council recommendations arising from the 2022 CORSIA periodic review.

Table A shows the origin of amendments to the Annex 16, Volume IV over time together with a list of the principal subjects involved and the dates on which the Annex and the amendments were adopted by the Council, when they became effective and when they became applicable.

Applicability

Part I of Volume IV of Annex 16 contains definitions, abbreviations and symbols. Part II, Chapter 2 contains Standards, Recommended Practices and guidelines for monitoring, reporting and verification of an aeroplane operator’s CO₂ emissions. Part II, Chapter 3 contains Standards, Recommended Practices and guidelines on an aeroplane operator’s CO₂ offsetting requirements that can be reconciled using emissions units generated by eligible programmes under Chapter 4. The relevant applicability requirements to an aeroplane operator engaged in international air navigation are specified in the individual Chapters of Volume IV of Annex 16.